April 11, 2019 / 10:49 AM / 2 months ago

BUZZ-Street View: Ted Baker drawing a line in the sand

** British fashion retailer Ted Baker names company veteran as its boss, also introducing changes to workplace standards as it looked to draw a line under misconduct allegations against founder and outgoing CEO Ray Kelvin.

** Kelvin, who had been CEO since the co’s launch in 1988, resigned last month over claims he presided over a culture of “forced hugging”

** Shares plunged more than 40 pct in 2018

** Analysts say company can now move on

DRAW A LINE

** “Ted Baker will be hoping it can now draw a line under this issue, though it’s already cost them a CEO and founder,” Hargreaves Lansdown analyst Laith Khalaf says

** “The appointment of Lindsay Page as CEO and the conclusion of the HSF investigation should now draw a line in the sand in what has been an unfortunate process,” Liberum analysts say

** Liberum analysts say Page’s appointment makes imminent sense and represents the smoothest of all transitions

NOT A ONE MAN SHOW

** Hargreaves Lansdown analyst Laith Khalaf says questions have been raised about the loss of creativity at Ted Baker now Kelvin has gone

** “Ted Baker is a company worth more than half a billion pounds, it’s not solely reliant on the flair of just one man. The focus now should be getting back to business as usual,” he says

BREAD AND BUTTER PROBLEMS

** Cityindex analysts say co, while getting a fresh start, will have to go back to facing some “bread and butter problems” that are not connected to the allegations

** Co last month reported its first drop in annual profit since 2008 financial crisis, highlighting tough conditions on Britain’s high streets.

** Cityindex analysts say co operating in environment where a bigger trend of moving away from high street shopping and towards online retail is being exacerbated by Brexit

Interactive graphic on Ted Baker sales: tmsnrt.rs/2CpIaR9

Reporting by Noor Zainab Hussain in Bengaluru

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